Step 1

Preheat the oven to 180 C (350 F) standard / 160 C (320 F) fan-forced. Line a 12-hole muffin pan with cupcake liners.

Step 2

In a large mixing bowl, add flour, sugars, baking powder, cinnamon and nutmeg. Add grated carrot and walnuts and mix briefly.

Step 3

In a separate bowl, add oil, vanilla, egg and milk and whisk gently, just to break up the egg yolks.

Step 4

Add to dry ingredients, and mix gently until combined. Batter will be quite runny – that’s fine.

Step 5

Spoon batter into cupcake liners, filling each one around 2/3 full. Bake for approximately 20-22 minutes or until a skewer inserted into the middle comes out clean. Leave cupcakes on a wire rack to cool completely.

Step 6

To make the cream cheese frosting, add butter and cream cheese to a large mixing bowl. Beat with an electric mixer for 2 minutes until smooth and creamy. Add vanilla. Add sugar, 1 cup at a time, and continue to beat until smooth.

Step 7

Transfer frosting to piping bag fitted with a large round tip. Pipe frosting onto cupcakes. Decorate with chopped walnuts.